Cleveland Council rejects resolution to drop appeal on sales tax

CLEVELAND, Tenn. - The Cleveland City Council on Monday rejected a resolution that would have ended the sales tax lawsuit between Cleveland and Bradley County.

Councilman Richard Banks introduced the resolution for the city to drop its appeal after a local court upheld a unique 1967 revenue-sharing agreement between the two entities. The resolution lists city-county joint endeavors, including industrial recruiting and jointly funded projects such as the public library and the Museum Center at 5ive Points. It also lists ongoing joint projects including future development at Interstate 75's exit 20 and development of a new industrial park.

Banks said he feared that, if the agreement is done away with, Bradley County would ask for in-lieu-of-tax payments from Cleveland Utilities, something the county gave up in the 1967 contract.